Insurable Interest Canadian Insurance Blog

Staff | May 15, 2020 Amazon.com Inc. is extending its increased hourly pay for all global employees and its double overtime pay for employees in Canada and the U.S. through May 30. The pay increase, which began in April, is $2 an hour in Canada, US$2 in the U.S., £2 in the U.K. and about €2 in many European Union countries. The extensions increase the online retailer’s total investment in pay during the coronavirus to nearly $800 million for its hourly employees, according to a company blog post. Read: A refresher on Canada’s leave policies as coronavirus escalates In addition, Amazon said it’s providing flexibility with leave of absence options, including expanding its policy to cover coronavirus circumstances, such as high-risk individuals or school closures. In the company’s recent earnings release, chief executive officer Jeff Bezos said Amazon expects to spend $4 billion, and perhaps a bit more, on coronavirus-related expenses getting products to customers and keeping employees safe. “This includes investments in personal protective equipment, enhanced cleaning of our facilities, less efficient process paths that better allow for effective social distancing, higher wages for hourly teams and hundreds of millions to develop our own COVID-19 testing capabilities. There is a lot of uncertainty in the world right now, and the best investment...

Staff | May 15, 2020 The majority (93 per cent) of Canadian employers plan to favour a government-based approach when it comes to bringing their employees back to work, according to a new survey by Aon. The survey, which reached more than 500 Canadian organizations in late April, also found 82 per cent of respondents said they’ll stagger return to work by role prioritization, while 71 per cent said they’ll stagger it by geography or location. Upon employees’ return to the workplace, all survey respondents said they’ll implement temperature check sites hosted by trained staff, thermal cameras or on a self-reporting basis. Most companies said they’ll request that their employees complete a health assessment survey upon their return. Read: Legal considerations for employers as pandemic drags on “Although the humanitarian and economic toll of the COVID-19 pandemic continues to climb, many organizations are beginning to shift their focus from crisis management and business continuity to planning a safe return to work, amidst a new normal for business operations once stay-at-home regulations begin to relax,” said Rejean Tremblay, chief commercial officer at Aon, in a press release. “This survey shows that Canadian organizations are taking proactive steps to improve their workplace and ease the return to the...

UPDATE: At 1 p.m. today, LATF announced a public comment period on the Independent Proposal. Comments will be accepted until May 27 and can be sent to Reggie Mazyck at [email protected] **** A wide rift opened Thursday among industry and consumer factions over changes to indexed universal life illustration rules, with anti-trust charges lobbed at the American Council of Life Insurers. The acrimony dashed plans by state regulators to reach a consensus on language changes. Minnesota regulator Fred Anderson planned as chairman to use the 90-minute call by the Life Actuarial Task Force to forge ahead on new language to Actuarial Guideline 49. That language was submitted by ACLI. Advertisement That plan met immediate resistance from Bobby Samuelson, former insurance company executive, and Birny Birnbaum, executive director of the Center for Economic Justice. An NAIC-supported consumer advocate, Birnbaum expressed the concern that ACLI was “engaging in anti-trust violations because it was acting as a mechanism for insurers to collaborate on regulatory guidance directly related to product designs.” The ACLI said the anti-trust claim did not have merit and did not help the process. “Baseless claims contribute nothing to the important discussion of how best to help consumers make informed decisions...

Toronto, ON (May 12, 2020) – As Canadian provinces and their economies slowly begin to re-open, a survey on consumer attitudes towards use of healthcare services reveals hesitancy to return to pre-pandemic behaviour without a COVID-19 vaccine. It also reveals a rapidly increasing interest in virtual healthcare services that eliminate physical interaction between patient and health provider. In a survey of over 500 Green Shield Canada (GSC) health benefits plan members, a majority of respondents indicated a likelihood of them attending a normal visit to the dentist (62%) in the pre-vaccine period, but a full 25% indicated they would not. When it came to paramedical services such as physiotherapy, massage and chiropractic services, only a minority of respondents indicated an intention to attend in-person appointments in a pre-vaccine environment, even if needed – 34% for physiotherapy, 29% for massage and 28% for chiropractic care. “It was an interesting exercise to measure Canadians’ attitudes about attending medical appointments that would have given them no pause only a few months ago,” explains GSC’s Executive Vice President of Digital, Innovation and Brand Experience, David Willows. A majority of respondents – 61% – also expressed an expectation that healthcare professionals will greet them in...

Chicago, IL (May 12, 2020) – CFC, the specialist insurance provider and pioneer in emerging risk, has announced the release of its bespoke insurance solution for licensing agreements. The new product expands on the company’s robust suite of media and intellectual property insurance products. Worth an estimated $280 billion, the global licensing industry is rapidly expanding as brand owners increasingly monetize their intellectual property assets – like logos, trademarks, graphics and animations – through third parties. However the Covid-19 pandemic has halted a long line of global events, and the financial impact of each cancellation or rescheduling decision could have a catastrophic effect for promotional partners, licensees and businesses involved in merchandising. License agreements often include a mandated insurance requirement, but to date the market has struggled to deliver a bespoke solution, forcing clients to purchase a full-fledged media liability policy instead. We’re excited to offer a standalone product with cover that’s designed specifically for these licensing exposures.Jade Giltrap, Media Team Leader, CFC Designed to protect licensees against unintentional breach of a licensing agreement, CFC’s new liability product offers a fit-for-purpose solution that covers individual licensing contracts or annual licensing agreements between multiple brands and the licensee. CFC’s new product...

Integration allows Shift’s Force fraud detection solution to seamlessly deliver alerts to snapsheet users Boston, MA (May 11, 2020) – Shift Technology, a provider of AI-native fraud detection and claims automation solutions, and Snapsheet, a leading provider of claims management technology and virtual appraisal solutions for insurance carriers, risk managers and TPAs, today announced a strategic partnership between the two companies. As a result of the agreement, users of Snapsheet’s claims management platform can receive notification of suspicious claims directly from Shift’s Force fraud detection technology. The goal of every insurer is to settle policyholder claims as quickly, fairly and accurately as possible. The ability to do so benefits not only the insurer, but also its customers. Having an effective claims management strategy in place, supported by the right combination of technology, is critical to making sure both the business’ and the policyholders’ expectations are met. Snapsheet addresses these requirements by delivering Snapsheet Claims, a digital-first, cloud-native claims management solution designed to provide faster, better experiences for all parties involved in the claims process. “For most insurers, the claims process is incredibly manual and complex, and without effective technology in place, everyone involved suffers,” explained Brad Weisberg, CEO and founder,...

CFOs Plan to Spend More on Cloud, Robotics, and Advanced Analytics Stamford, CT (May 11, 2020) – A Gartner Inc. survey of 161 finance executives on May 3, 2020* revealed that in May and June the number of companies furloughing staff, as well as cutting salaries and workforce will have more than doubled since the end of March. Eleven percent of respondents reduced staff in March, and 25% plan to reduce staff in May and June (see Figure 1, below). “CFOs are unsure what reopening will look like and have little visibility into when revenue will start to normalize. This is driving CFOs to look for the next round of structural cost cuts to preserve cash for the coming months,” said Alexander Bant, practice vice president, research, for the Gartner Finance Practice. “Companies are conducting robust analysis about which of their business lines and products sets they will rescale, reinvest, return, reduce, and retire. As they do this, they are determining which sets of staff they need to succeed in the short-and-long-term.” Figure 1: What cost reduction actions has your organization taken or do you plan to take in May/June in response to the COVID-19 pandemic? “CFOs want to optimize...

Willis Towers Watson survey also finds employers adding flexibility to leave programs Arlington, VA (May 11, 2020) – Companies are making enhancements to their health care, wellbeing and leave programs, according to a new Willis Towers Watson survey examining the business impact of COVID-19 on health benefits. The survey, conducted April 20-23, found that nearly half of respondents (47%) are enhancing health care benefits, 45% are broadening wellbeing programs, and 33% plan to make changes to paid time off (PTO) or vacation programs. And while some companies are reducing costs in other ways — furloughs, pay cuts and reductions in 401(k) matching contributions — many are preserving wellbeing plans at a time when employees are facing significant challenges. “Although most employers anticipate a significant negative impact from COVID-19, many are taking steps to protect the health and wellbeing of their employees,” said Regina Ihrke, senior director and wellbeing leader, North America, Willis Towers Watson. “Employers are doing what they can to support their workers through this difficult time. The pandemic has led to high levels of employee anxiety and stress, so employers are making it easier for employees to get help across all aspects of the wellbeing spectrum.” Supporting physical...

Martha Porado | May 15, 2020 With the coronavirus pandemic set as the backdrop for the foreseeable future, employers are getting mixed signals about the best way to function safely and effectively. “You have to look at this from the perspective of [having] the federal government saying, ‘Here’s what we think you should do,’” says Kathleen Chevalier, partner at Stikeman Elliott LLP. “You’ve got each provincial government coming out with guidelines, reopening plans, regulations for employers. Then you’ve got the public health authorities. And it would be a gross oversimplification to say all of those are in step with each other.” Read: 41% of Canadian businesses have laid off staff due to coronavirus: Stats Can For organizations where all or the majority of employees can do their jobs from home, many are pulling together policies and procedures to ensure the parameters of remote work are clear, she says. “These are more about setting the groundwork and laying out expectations for people while they’re working from home. Obviously, the expectation is you’re still working, you’re still being productive, still being efficient. You’re still expected to request and track vacation time. You’re still requested to let us know if you’re taking sick time. More important than ever...

By Aly Dhalla, CEO & Co-Founder, Finaeo — I started my career as a retail financial advisor working for TD Canada Trust. My branch, located in a middle-class neighbourhood in Coquitlam, British Columbia, was a community close to my heart. I attended Centennial high-school just up the road and many of the families that came through our branch were parents or relatives of kids I grew up with. Being at Austin TD was like a reunion, daily. The 2008/09 recession was an extremely challenging time. I witnessed many families struggle to keep their homes, their businesses, and sometimes their families, intact. To go through that experience early in my career changed my life forever. I learned that financial wellness is directly tied to mental wellness. Generally, the less stress you have about money, the better life you can live. That’s not to say “money buys you happiness” but it is true that money and emotions are highly correlated. When we started Finaeo, my Co-Founder, Donald Chu, shared a story with me about the first time he delivered a claim cheque. He called it, “a privilege and an honour”. As an advisor, one of the most rewarding parts of our job is...